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Assume the​ zero-coupon yields on​ default-free securities are as summarized in the following​ table: Maturity 1...

Assume the​ zero-coupon yields on​ default-free securities are as summarized in the following​ table:

Maturity

1 year

2 years

3 years

4 years

5 years

​Zero-Coupon Yields

6.20​%

6.60​%

6.80​%

7.10​%

7.40​%

What is the price of a​ three-year, default-free security with a face value of $1,000 and an annual coupon rate of 4%​? What is the yield to maturity for this​ bond?

What is the price of a​ three-year, default-free security with a face value of $1,000 and an annual coupon rate of 4%​?
The price is $.............. (Round to the nearest​ cent.)

What is the yield to maturity for this​ bond?

The yield to maturity for this bond is ………..%. (Round to two decimal​ places.)

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